Oil Sheds April Gains, Shrugs off Bullish Eurozone Data


   
   VIENNA (DTN) -- Oil futures closest to expiration on the New York Mercantile 
Exchange and Brent crude on the Intercontinental Exchange continued lower 
Tuesday morning, seemingly indifferent to upbeat macroeconomic data released 
early Tuesday.

   S&P Global's preliminary Eurozone composite Purchasing Manager Index for 
April was in solid growth territory for the first time since June of last year. 
Last month's composite PMI teased the recovery, barely breaching the 50-point 
mark separating growth and contraction. The higher-than-expected reading, 
however, came not as a consequence of a recovering manufacturing sector but on 
the back of strong growth in services. The manufacturing PMI in April dropped 
for the third consecutive month to 45.6 -- 0.5 points below March and the 
lowest since December, amplifying demand concerns around the middle of the 
barrel.

   The U.S. manufacturing sector, while equally stuck in a rut last year, has 
shown some indications of a turnaround in 2024. January's S&P Global U.S. 
Manufacturing PMI marked the end of a four-month streak of sub-50 readings, 
with the measures for February and March both finding themselves in solid 
growth territory. The preliminary U.S. Manufacturing PMI for April is scheduled 
to be released at 9:45 AM ET.

   Near 8:00 AM ET, West Texas Intermediate futures for June delivery were down 
$0.61 to trade near $81.29 bbl, and Brent for June delivery fell $0.60 to 
$86.40 bbl. RBOB for May delivery slid $0.0236 to $2.6618 gallon, while ULSD 
for May delivery dropped to $2.5390 gallon, down $0.0214.

    

    

   Karim Bastati, karim.bastati@dtn.com, www.dtn.com.




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